Do I include 2018 401k excess deferral tax withholdings in the 2018 or 2019 tax return?

Jim27 · ‎June 6, 2019

I received a check in March 2019 for 401K excess deferral (due to over contribution to the 401k plan). The amount I received was less federal and state tax withholdings. I understand I should report the excess deferral in the 2018 tax return based on other Q&A in this website. How about the federal and state tax that was withheld. Do I include the withheld taxes in the 2018 tax return or in the 2019 tax return?"

Rachel_W · ‎June 6, 2019

You will include the federal and state taxes withheld on your 2019 Tax Returns.

You will receive a 2019 Form 1099-R reporting the distribution which you will include when you do 2019 taxes. The income boxes will be ignored since you have already reported the income on your 2018 Tax Return, but the withholding reported on the Form 1099 will be credited to your returns.

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echoasia · ‎July 14, 2020

I got the check before April 15th. Let's say the 401k excess amount was $10000. The check I got was $7000 (30% withheld). If I enter $10000 into TurboTax (for the current year), my tax goes up the extra $3000.

Doesn't this mean I am double-taxed ? They say they will send 1099-R next year, and suggested to contact TurboTax to find where to enter the withheld amount (or rate) for the excess $10000.

Where do I enter the withheld amount ($3000) or the rate (30%) in TurboTax?

Do I include 2018 401k excess deferral tax withholdings in the 2018 or 2019 tax return?

Retirement tax questions

Retirement tax questions